What does FOB destination indicate in shipping terms?

FOB (Free On Board) destination is a shipping term that indicates the seller is responsible for the goods and the shipping costs until the merchandise reaches the buyer's location. This means that ownership and risk of loss do not transfer to the buyer until the goods are delivered to their destination. Therefore, the correct answer highlights that the delivery is to the purchaser's location, indicating that the seller bears the responsibility for the shipping until it arrives at the buyer's location.

This understanding is crucial for determining the liability, risk, and responsibilities involved in the transaction. The other options do not align with the definition of FOB destination. For instance, delivery at the seller's location refers to a situation where the buyer assumes risk once the goods leave the seller's premises. Similarly, stating that shipping costs are borne by the buyer would apply under different terms such as FOB shipping point. Lastly, the concept of title transfer at the seller’s dock does not accurately capture the essence of FOB destination, as the title remains with the seller until delivery is completed at the buyer’s specified destination.